Vector Capital offers $13/share for Aladdin Knowledge

Aug 21 (Reuters) - Software security company SafeNet Inc, controlled by investment firm Vector Capital, said it offered to acquire Israel-based rival Aladdin Knowledge Systems Ltd. for $13 a share.

The offer, announced early Thursday, is 14 percent more than Aladdin's closing share price on Tuesday.

It values the company at about $184.5 million, based on 14.2 million shares outstanding as on July 21.

The proposal comes after Vector Capital withdrew an offer to buy out consumer software developer Corel Corp , in which it holds a majority stake.

As a potential alternative to a full buyout, SafeNet also proposed an acquisition of Aladdin's digital rights management software business for $125 million to 135 million, with Aladdin repurchasing its shares held by Vector Capital.

Digital rights management software business accounts for more than half of Aladdin Knowledge's revenue.

SafeNet said it made the offer to Aladdin on Aug. 16. On Aug. 20, Aladdin said it had received the offer and was reviewing the proposal.

Apart from Corel and SafeNet, the technology-focused investment firm has acquired companies such as Register.com, WatchGuard Technologies and WinZip.

Aladdin's shares have lost more than a third of their value in the last three months, hurt by a drop in the company's second-quarter earnings and a weak profit outlook.

The shares closed at $12.69 Wednesday on Nasdaq. (Reporting by Saumyadeb Chakrabarty in Bangalore; Editing by Vinu Pilakkott)